Foley & Lardner LLP partner Gardner Davis and James Ritter authored the Westlaw article, “Corporate Transparency Act ruled unconstitutional,” exploring the recent ruling in National Small Business United v. Yellen that held the Constitution does not give Congress the power to regulate the millions of business entities incorporated under state law and their shareholders the moment they obtain formal corporate status from the state.
The authors explore the background of the Corporate Transparency Act (CTA), the arguments brought in the suit against the CTA, and the reasoning by the U.S. District Court in the case.
“The CTA remains the law of the land,” Davis and Ritter. “Unless entities meet an exemption, they should plan to make the required CTA filings. However, the long-term future of the CTA is unclear pending the government’s appeal and further administrative action.”
